Tenterden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Tenterden tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Tenterden you really ought to see if your lease has between 70 and ninety years left. There are good reasons why a Tenterden leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
Leasehold premises in Tenterden with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Tenterden,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tenterden valuers.
David owned a 2 bedroom apartment in Tenterden on the market with a lease of a little over 61 years left. David informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were David to invoke his statutory right. David obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr and Mrs. J Laurent completed a purpose-built flat in Tenterden in January 2006. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative flats in Tenterden with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected per annum. The lease ended on 25 August 2089. Given that there were 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 not including costs.
Mr and Mrs. U Norbert purchased a basement apartment in Tenterden in April 2002. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Tenterden with a long lease were valued about £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease ran out on 20 October 2100. Having 74 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.